The world's largest listed miner has faced increasing pressure from investors worried that some mineral lobby groups, particularly in Australia, are promoting coal use in contravention of the goals of the Paris climate pact, and have urged BHP to stop funding them.
BHP said it would instead work with industry associations to outline its priorities and approach for advocacy around climate goals.
"As industry leaders like BHP make firm commitments on climate transition, we welcome this effort to ensure that trade associations remain in step with their more forward-thinking members," said Thomas O'Malley, Global Head of Corporate Governance, HSBC Global Asset Management and co-lead of the Climate Action 100+ engagement with BHP.
BHP, which quit the World Coal Association in 2018, said it will publish annually a list of material association memberships and disclose in real time if one any of the associations breaches its global climate policy standards.
It also said industry groups it supports should not advocate in favour of Australia's use of Kyoto carryover credits, a controversial accounting method that would allow Australia to use its old carbon credits from the 1992 Kyoto Protocol to meet Paris targets.
Last year, BHP said it was reviewing its membership of four industry associations including the New South Wales Minerals Council due to concerns about their climate and energy policies.
The NSW Minerals Council last month petitioned the state government to fast track approvals for 21 new coal mines, the majority containing thermal coal.
The Minerals Council of Australia said it welcomed BHP's findings and would will work with BHP and state associations to progress the key issues raised.
(Reporting by Melanie Burton; Editing by Lincoln Feast.)